12274 Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Rules and Regulations DEPARTMENT OF ENERGY Joseph M. Power (Technical B. Legal Authority InformationÐDocket No. RM94±7± C. Comparability Federal Energy Regulatory 002), Office of Electric Power 1. Eligibility to Receive Non-discriminatory Commission Regulation, Federal Energy Regulatory Open Access Transmission a. Unbundled Retail Transmission and Commission, 888 First Street, N.E., 18 CFR Part 35 ``Sham Wholesale Transactions'' Washington, D.C. 20426, (202) 208± b. Transmission Providers Taking Service 1242 Under Their Tariff [Docket Nos. RM95±8±001 and RM94±7± SUPPLEMENTARY INFORMATION: In 2. Service that Must be Provided by 002; Order No. 888±A] addition to publishing the full text of Transmission Provider 3. Who Must Provide Non-discriminatory Promoting Wholesale Competition this document in the Federal Register, the Commission also provides all Open Access Transmission Through Open Access Non- 4. Reservation of Transmission Capacity by Discriminatory Transmission Services interested persons an opportunity to Transmission Customers by Public Utilities; Recovery of inspect or copy the contents of this 5. Reservation of Transmission Capacity for Stranded Costs by Public Utilities and document during normal business hours Future Use by Utility Transmitting Utilities in the Public Reference Room at 888 6. Capacity Reassignment First Street, N.E., Washington, D.C. 7. Information Provided to Transmission Issued March 4, 1997. 20426. Customers AGENCY: Federal Energy Regulatory The Commission Issuance Posting 8. Consequences of Functional Unbundling Commission. System (CIPS), an electronic bulletin a. Distribution Function board service, provides access to the b. Retail Transmission Service ACTION: Final rule; order on rehearing. c. Transmission Provider texts of formal documents issued by the 1. Taking Service Under the Tariff SUMMARY: The Federal Energy Commission. CIPS is available at no 2. Accounting Treatment Regulatory Commission (Commission) charge to the user and may be accessed D. Ancillary Services reaffirms its basic determinations in using a personal computer with a 1. Specific Ancillary Services Order No. 888 and clarifies certain modem by dialing 202±208±1397 if a. Scheduling, System Control and terms. Order No. 888 requires all public dialing locally or 1±800±856±3920 if Dispatch Service utilities that own, control or operate dialing long distance. To access CIPS, b. Reactive Supply and Voltage Control facilities used for transmitting electric set your communications software to from Generation Sources Service 19200, 14400, 12000, 9600, 7200, 4800, c. Energy Imbalance Service energy in interstate commerce to have (1) Description of Energy Imbalance on file open access non-discriminatory 2400, or 1200 bps, full duplex, no (2) Energy Imbalance Bandwidth transmission tariffs that contain parity, 8 data bits and 1 stop bit. The 2. Ancillary Services Obligations minimum terms and conditions of non- full text of this order will be available a. Obligation of a Control Area Utility discriminatory service. Order No. 888 on CIPS in ASCII and WordPerfect 5.1 b. Obligation to Provide Dynamic also permits public utilities and format. CIPS user assistance is available Scheduling transmitting utilities to seek recovery of at 202±208±2474. c. Obligation As Agent legitimate, prudent and verifiable CIPS is also available through the Fed 3. Miscellaneous Ancillary Services Issues stranded costs associated with World system. Telnet software is a. Transmission Provider as Ancillary Services Merchant providing open access and Federal required. To access CIPS via the Internet, point your browser to the URL b. QF Receipt of Ancillary Services Power Act section 211 transmission c. Pricing of Ancillary Services services. The Commission's goal is to address: http://www.fedworld.gov and E. Real-Time Information Networks remove impediments to competition in select the ``Go to the FedWorld Telnet F. Coordination Arrangements: Power the wholesale bulk power marketplace Site'' button. When your Telnet software Pools, Public Utility Holding Companies, and to bring more efficient, lower cost connects you, log onto the FedWorld Bilateral Coordination Arrangements, power to the Nation's electricity system, scroll down and select and Independent System Operators . .. consumers. FedWorld by typing: 1 and at the 179 command line then typing: /go FERC. 1. Tight Power Pools EFFECTIVE DATE: This rule is effective on 2. Loose Pools May 13, 1997. FedWorld may also be accessed by Telnet at the address fedworld.gov. 3. Public Utility Holding Companies 4. Bilateral Coordination Arrangements FOR FURTHER INFORMATION CONTACT: Finally, the complete text on diskette G. Pro Forma Tariff David D. Withnell (Legal InformationÐ in Wordperfect format may be 1. Tariff Provisions That Affect The Pricing Docket No. RM95±8±001), Office of purchased from the Commission's copy Mechanism the General Counsel, Federal Energy contractor, La Dorn Systems a. Non-Price Terms and Conditions Regulatory Commission, 888 First Corporation. La Dorn Systems b. Network and Point-to-Point Customers' Street, N.E., Washington, D.C. 20426, Corporation is also located in the Public Uses of the System (so called ``Headroom'') (202) 208±2063 Reference Room at 888 First Street, N.E., Washington, D.C. 20426. c. Load Ratio Sharing Allocation Deborah B. Leahy (Legal InformationÐ Mechanism for Network Service Docket No. RM94±7±002), Office of I. Introduction and Summary II. Public Reporting Burden (1) Multiple Control Area Network the General Counsel, Federal Energy III. Background Customers Regulatory Commission, 888 First IV. Discussion (2) Twelve Monthly Coincident Peak v. Street, N.E., Washington, D.C. 20426, A. Scope of the Rule Annual System Peak (202) 208±2039 1. Introduction (3) Load and Generation ``Behind the Dan T. Hedberg (Technical 2. Functional Unbundling Meter'' InformationÐDocket No. RM95±8± 3. Market-based Rates (4) Existing Transmission Arrangements associated with Generating Capacity 001), Office of Electric Power a. Market-based Rates for New Generation b. Market-based Rates for Existing Entitlements (e.g., ``preference power'' Regulation, Federal Energy Regulatory Generation customers of PMAs) Commission, 888 First Street, N.E., 4. Merger Policy d. Annual System Peak Pricing for Flexible Washington, D.C. 20426, (202) 208± 5. Contract Reform Point-to-Point Service 0243 6. Flow-based Contracting and Pricing e. Opportunity Cost Pricing Federal Register / Vol. 62, No. 50 / Friday, March 14, 1997 / Rules and Regulations 12275 (1) Recovery of Opportunity Costs 5. Recovery of Stranded Costs Associated At the heart of these rules is a (2) Redispatch Costs With Existing Wholesale Requirements requirement that prohibits owners and f. Expansion Costs Contracts operators of monopoly transmission g. Credit for Customers' Transmission 6. Recovery of Stranded Costs Caused by facilities from denying transmission Facilities Retail-Turned-Wholesale Customers access, or offering only inferior access, to h. Ceiling Rate for Non-firm Point-to-Point 7. Recovery of Stranded Costs Caused by other power suppliers in order to favor Service Retail Wheeling the monopolists' own generation and i. Discounts 8. Evidentiary Demonstration NecessaryÐ increase monopoly profitsÐat the j. Other Pricing Related Issues Not Reasonable Expectation Standard expense of the nation's electricity Specifically Addressed in the Final Rule 9. Calculation of Recoverable Stranded consumers and the economy as a whole. (1) Demand Charge Credits Costs The electric utility industry today is (2) In-Kind Transactions 10. Stranded Costs in the Context of 2. Priority For Obtaining Service Voluntary Restructuring not the industry of ten years ago, or a. Reservation Priority for Existing Firm 11. Accounting Treatment for Stranded even five years ago. While historically it Service Customers Costs was assumed that local utilities would b. Reservation Priority for Firm Point-to- 12. Definitions, Application, and Summary be the only ones to generate and Point and Network Service K. Other transmit power for their customers, c. Reservation Priorities for Non-firm 1. Information Reporting Requirements for today there is a broad array of potential Service Public Utilities 3. Curtailment and Interruption Provisions competitors to supply power and 2. Small Utilities widespread transmission facilities that a. Pro-rata Curtailment Provisions 3. Regional Transmission Groups b. Curtailment and Interruption Provisions 4. Pacific Northwest can carry power vast distances. But for Non-firm Service 5. Power Marketing Agencies competitors cannot reach customers if 4. Reciprocity Provision a. Bonneville Power Administration (BPA) they cannot have fair access to the 5. Liability and Indemnification b. Other Power Marketing Agencies transmission wires necessary to reach 6. Umbrella Service Agreements 6. Tennessee Valley Authority those customers. It is against this 7. Other Tariff Provisions 7. Hydroelectric Power industry backdrop that the Commission a. Minimum and Maximum Service 8. Residential Customers Periods in Order No. 888 exercised its public 9. Miscellaneous Issues interest responsibilities pursuant to b. Amount of Designated Network V. Environmental Statement Resources sections 205 and 206 of the Federal A. The Appropriate No-Action Alternative c. Eligibility Requirements B. Challenges to Modeling Assumptions Power Act (FPA), to reexamine undue d. Two-Year Notice of Termination 1.